WHAT IS THE SCRIP DIVIDEND "IBERDROLA FLEXIBLE DIVIDEND"?

A formula for shareholder remuneration

Full-paid capital increase: 1 share = 1 right

Iberdrola shareholders will receive one free allocation right per each share held and they will have the opportunity to choose between these three options:

  1. Receive newly issued Iberdrola shares
    • If shareholders keep the free allocation rights until the end of the trading period they will receive free(1) Nota newly issued Iberdrola shares(2) Nota .
    • This is the default option and therefore, your bank will undestand that this is your election if you do not contact them.
  2. Receive cash by selling their rights to Iberdrola
    • Iberdrola will buy the free allocation rights at a guaranteed fixed price of at least 0.145 euros per right(3) Nota pursuant the purchase commitment assumed.
    • If shareholders choose this option, they must communicate it to their bank between 5 and 14 July 2017.
  3. Receive cash by selling their rights on the market  
    • If shareholders choose this option they will not be entitled to the guaranteed fixed price. The sale price of the right will fluctuate in accordance with its market price.
    • Shareholders must communicate it to their bank between 5 and 19 July 2017.

Furthermore, shareholders do not need to choose one option, and can mix and match them to suit their needs. 

Shareholders should be aware of the different tax treatment of each option. 

(1) Nota The new shares will be delivered to shareholders free of charge and without fees. In accordance with applicable law, the custodian of your shares will be entitled to charge the management fees and expenses it deems appropriate, including fees for handling sale and purchase orders of freely assignable rights.

(2) Nota The number of rights needed  to get a new share will be calculated on the basis of the formula approved in the 2017 General Shareholders' Meeting available on this website, and it will be announced on 3 July 2017.

(3) Nota  The guaranteed fixed price will be calculated on the basis of the listed price for Iberdrola shares on 26, 27, 28, 29 and 30 June 2017, as well as the formula approved in the 2017 General Shareholders' Meeting available on this website, and it will be announced on 3 July 2017.